2 Corporate Social Responsibility

Corporate Social Responsibility
➢ Corporate Social Responsibility, often abbreviated "CSR," is a corporation's
initiatives to assess and take responsibility for the company's effects on
environmental and social wellbeing.
➢ CSR may also be referred to as "corporate citizenship" and can involve
incurring short-term costs that do not provide an immediate financial
benefit to the company, but instead promote positive social and
environmental change
➢ CSR is the procedure of assessing an organization’s impact on society and
evaluating their responsibilities.
➢ The most effective CSR plans ensure that while organizations comply with
legislation, their investments also respect the growth and development of
marginalized communities and the environment.

Corporate Social Responsibility - Definitions
➢ “Corporate Social Responsibility refers to the obligations of businessmen to
pursue those policies, to make those decisions, or to follow those lines of
action which are desirable in terms of the objectives and values of society.”
(Bowen, 1953 cited in Carroll, 2008, p. 25)
➢ Carroll (1979, p. 500) defines CSR as “The social responsibility of business
encompasses the economic, legal, ethical, and discretionary expectations
that society has of organizations at a given point in time.”
➢ The ASEAN CSR Network defines CSR as follows “CSR is not about how
money is spent but more about how money is made. It is beyond charity
and philanthropy.” (ASEAN CSR Network, 2015).

Corporate Social Responsibility - Definitions
The International Organization for Standardization’s Guidance Standard on
Social Responsibility, ISO 26000, describes CSR as:
“Social responsibility is the responsibility of an organization for the impacts of
its decisions and activities on society and the environment, through
transparent and ethical behavior that:
• contributes to sustainable development, including the health and the
welfare of society
• takes into account the expectations of stakeholders
• is in compliance with applicable law and consistent with international
norms of behavior, and
• is integrated throughout the organization and practiced in its relationships.”
(International Organization for Standardization, 2010).

➢ The core concept of CSR, that a company has responsibilities to society
besides making maximum profits, goes back to the late 19th century.
(Center for Ethical Business Cultures, 2005).
➢ British confectionery company Cadbury was a pioneer at taking into
account its employees’ welfare. In 1879, the company built a new factory
with houses for its employees and a garden and sports facilities to
encourage its employees and their families to do sports activities.
➢ The company also held morning prayers and negotiated special train fares
for its employees, who didn’t live near the factory. (Cadbury, 2015).

➢ Prior to Companies Act 2013, CSR in India has traditionally been seen as a
philanthropic activity. And in keeping with the Indian tradition, it was
believed that every company has a moral responsibility to play an active
role in discharging the social obligations, subject to the financial health of
the company.
➢ In the early 90’s Mahatma Gandhi introduced the concept of trusteeship
helping socio-economic growth. CSR was influenced by family values,
traditions, culture and religion.
➢ Dr. Bhaskar Chatterjee, popularly known in India as the 'father of CSR',
addressed the United Nations' (UN) 2016 Forum on Business and Human
Rights, sharing insights into India's unique law on Corporate Social
Responsibility (CSR)

➢ Over the years, Chatterjee has spoken and lectured at a number of
international meetings as the primary force for bringing a new paradigm to
the realm of CSR. He was instrumental in framing and issuing the guidelines
for this new law.
➢ At the UN, Chatterjee joined a panel titled, ‘State regulatory approaches:
the practice in emerging markets’ to talk about the relevance of CSR
legislation for a developing country. This UN Forum is the world's largest
annual gathering on business and human rights, with 2,300 participants
from government, business, other UN bodies, community groups, law
firms, trade unions, academia and the media.

➢ India is the first country in the world to make corporate social
responsibility (CSR) mandatory, following an amendment to The Company
Act, 2013 in April 2014.
➢ Businesses can invest their profits in areas such as education, poverty,
gender equality, and hunger as part of any CSR compliance
➢ Amid the COVID-19 (coronavirus) outbreak, the Ministry of Corporate
Affairs has notified that companies’ expenditure to fight the pandemic will
be considered valid under CSR activities. Funds may be spent on various
activities related to COVID-19 such as promotion of healthcare including
preventive healthcare and sanitation, and disaster management.

➢ Corporate Affairs Minister Nirmala Sitharaman tweeted the circular.
"In view of the spread of novel #CoronaVirus in India, its declaration as
pandemic by the WHO, and decision of Government of India to treat this as
notified disaster, it is hereby clarified that spending of CSR funds for COVID-
19 is eligible CSR activity...," she tweeted in March 2020.
➢ Consultancy Corporate Professionals Group Founder Pavan Kumar Vijay
said the ministry's clarification on CSR was a welcome step.
"For the purpose, it is suggested that the government may immediately
create a portal on which specific requirements by way of equipment,
medicines, etc. may be posted and the corporates may be permitted to
contribute in cash or kind towards those specific requirements. This will
ensure coordinated efforts and avoid duplication," he said.

➢ The amendment notified in the Companies Act, 2013 requires companies
with a net worth of INR 5 billion (US$70 million) or more, or an annual
turnover of INR 10 billion (US$140 million) or more, or net profit of INR 50
million (US$699,125) or more, to spend 2 percent of their average net
profits of three years on CSR, It is known as the ‘2 Percent Law’ in India and
has drawn worldwide interest.
➢ Prior to that, the CSR clause was voluntary for companies, though it was
mandatory to disclose their CSR spending to shareholders
➢ CSR includes but is not limited to the following:
• Projects related to activities specified in the Companies Act; or
• Projects related to activities taken by the company board as recommended
by the CSR Committee, provided those activities cover items listed in the
Companies Act.

CSR amendments under the Companies (Amendment) Act, 2019
➢ Until now, if a company was unable to fully spend its CSR funds in a given
year, it could carry the amount forward and spend it in the next year, in
addition to the money allotted for that year.
➢ The CSR amendments introduced under the Act now require companies to
deposit the unspent CSR funds into a fund prescribed under Schedule VII of
the Act (such as the Prime Minister Relief Fund) within six months of the
end of the financial year and disclose the reasons for non-spending in their
annual report.
➢ This amount must be utilized within three years from the date of transfer,
failing which the fund must be deposited in to one of the specified funds.

CSR amendments under the Companies (Amendment) Act, 2019
➢ The new law prescribes for a monetary penalty as well as imprisonment in
case of non-compliance. The penalty ranges from INR 50,000 (US$700) to
INR 2.5 million (US$35,000) whereas the defaulting officer of the company
may be liable to imprisonment for up to three years, or a fine up to INR
500,000 (US $7,023), or both.
➢ The government, however, is reviewing these rules after the industry
objected to the strict provisions, especially with respect to the jail terms
for CSR violations, and is yet to operationalize them.

Management of Socially Responsible Business
➢ The term “corporate social responsibility” came into common use in the
late 1960s and early 1970s after many multinational corporations formed
the term stakeholders, meaning those on whom organization activities
have an impact.
➢ Corporate social responsibility (CSR) refers to business practices
involving initiatives that benefit society.
➢ A business's CSR can encompass a wide variety of tactics, from giving away
a portion of a company's proceeds to charity, to implementing
"greener" business operations etc.
➢ The concept of CSR rests on the ideology of give and take. Companies
take resources in the form of raw materials, human resources etc. from
the society. By performing the task of CSR activities, the companies
are giving something back to the society (Companies Act 2013).

➢ CSR policy functions as a built-in, self-regulating mechanism whereby
business monitors and ensures its active compliance with the spirit of
the law, ethical standards, and international norms.
➢ Social responsibility is an ethical framework and suggests that an entity, be
it an organization or individual, has an obligation to act for the benefit of
society at large.
➢ Social responsibility is a duty every individual has to perform so as to
maintain a balance between the economy and the ecosystems.
➢ Social responsibility can be passive, by avoiding engaging in socially
harmful acts, or active, by performing activities that directly advance social
goals

➢ The first company of good corporate governance is the Indian IT industry
bellwether, Infosys. In fact, Infosys is one of the companies that has set
benchmarks for other companies not only in India but all over the world in
the way corporate governance and social responsibility are handled and
projected to the outside world.
➢ Another company that has done an exceptional job of portraying itself as a
good corporate citizen is the TATA group in India

Pyramid of CSR
➢ In his 1991 article The Pyramid of Corporate Social Responsibility, Dr. Archie
B. Carroll, a business management author and professor at the University
of Georgia, outlined the four areas he believed were essential in a
company’s corporate social responsibility.
➢ These elements were organized in order
of importance and presented visually in what
is now known as the Pyramid of Corporate
Social Responsibility.

Pyramid of CSR
Archie Carroll suggests that corporate has to fulfil responsibility at four levels
– Economic, Legal, Ethical and Philanthropic.
• The Economic Responsibility to be profitable.
• The Legal Responsibility to obey the laws set forth by society.
• The Ethical Responsibility, to do what is right even when business is not
compelled to do so by law.
• The Philanthropic Responsibility (also called
the discretionary responsibility), best described by the resources
contributed by corporations toward social, educational, recreational and/or
cultural purposes.

Pyramid of CSR
➢ Economic: The first and most vital level of the pyramid is a company’s
economic responsibilities. As a fundamental condition for its existence, a
company must be profitable. If this requirement is not met, the business
cannot survive, and as a result, the company will not be able to move on to
the other levels of the pyramid.
➢ Legal: After satisfying its economic responsibilities, companies must ensure
that their business operations are within the confines of the law. At this
level, organizations must fulfill their legal requirements. Like the economic
requirements, if legal requirements are not met the company’s survival
may be at stake, preventing them from moving on to other levels of the
pyramid. These legal requirements include, but are not limited to,
employment, competition, and health and safety laws.

Pyramid of CSR
➢ Ethical: The next level of the pyramid is the company’s ethical
responsibilities. In this stage, the company goes beyond legal requirements
by acting morally and ethically. In other words, the company makes a
conscious decision to “do the right thing.” For example, in an attempt to
reduce waste, some coffee shops have started offering discounts to
customers who bring their own reusable cups.
➢ Philanthropic: Once the economic, legal, and ethical foundations of the
pyramid have been built, the company can move on to the final level of the
pyramid — philanthropic responsibilities. At this level, the company goes
beyond its ethic responsibilities by actively giving back and making a
positive impact on society.
After almost three decades since its introduction, the Pyramid of Corporate
Social Responsibility remains highly relevant.

Section 135 and Schedule VII of Companies Act

Entries in Schedule VII
i. Eradicating hunger, poverty and malnutrition, promoting healthcare,
including preventive healthcare and sanitation, including contribution to
the Swachch Bharat Kosh set-up by the Central Government for the
promotion of sanitation and making available safe drinking water.
ii. Promotion of education, including special education and employment
enhancing vocation skills especially among children, woman, elderly and
the differently abled and livelihood enhancement projects
iii. Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans, setting up old age homes, day care
centers, and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward groups

iv. Ensuring environmental sustainability, ecological balance, protection of
flora and fauna, animal welfare, agroforestry, conservation of natural
resources and maintaining quality of soil, air and water including
contribution to the Clean Ganga Fund set-up by the Central Government
for rejuvenation of river Ganga
v. Protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up of
public libraries, promotion and development of traditional arts and
handicrafts
vi. Measures for the benefit of armed forces veterans, war widows and their
dependents
vii. Training to promote rural sports, nationally recognized sports, Paralympic
sports and Olympic sports

viii. Contribution to the Prime Minister's National Relief Fund or any other
fund set up by the Central Government for socio-economic development
and relief and welfare of the Scheduled Castes, the Scheduled Tribes,
other backward classes, minorities and women.
ix. Contributions or funds provided to technology incubators located within
academic institutions which are approved by the Central Government
x. Rural development projects
xi. Slum area development (‘slum area’ shall mean any area declared as such
by the Central Government or any State Government or any other
competent authority under any law for the time being in force)

Types of CSR activities under Schedule VII of the Companies Act 2013
➢ Eradicating hunger, poverty and malnutrition
➢ Promoting education
➢ Promoting gender equality
➢ CSR initiatives related to the environment
➢ Protection of national heritage, art and culture
➢ Measures can be taken towards the benefit and support of armed forces
veterans, war widows and families
➢ Contributions to the Prime Minister’s National Relief Fund or any other
fund set up by the central government, for welfare, development and relief
of the schedule caste, tribes, other backward classes, women and
minorities.

Types of CSR activities under Schedule VII of the Companies Act 2013
➢ Contributions or funds provided to the development of technology located
within the central government approved academic institutions.
➢ Contributions can be made towards rural development projects and slum
area development.

Business Ethics
➢ Ethics refer to a system of moral principles – a sense of right and wrong and
goodness and badness of actions and their motives and consequences.
➢ It is a set of concepts and principles that guide us in determining what
behavior helps or harms others in the society.
➢ Business Ethics or Corporate Ethics refer to the application of ethics to
business. It is the study of good and evil, right and wrong and just and
unjust actions of businessmen.
➢ They are basically the moral principles that guide the way a businessman
behaves.
➢ It applies to all aspects of business conduct and is relevant to the conduct
of individuals and entire organizations.

Business Ethics
➢ Long-term Growth: Sustainability comes from an ethical long-term vision
which takes into account all stakeholders. Organizations should aim for
smaller but sustainable profits in the long-term.
➢ Public Image: An organizations environmental policy, the way they treat
their employees and the way they treat the communities are all part of
their overall behavior and this in turn is the principle factor in determining
their public image.
➢ Cost and Risk Reduction: Companies which recognize the importance of
business ethics will need to spend less in order to protect themselves from
internal and external behavioral risks as they are supported by sound
governance systems.

CSR of Business Towards Stake Holders

Social Responsibilities of Business Towards Different Stakeholders-
SHAREHOLDERS
(1)To ensure safety of investment.
(2)To ensure fair and regular return on investment.
(3)To give complete information regarding the financial position of the
business.
(4)To give them opportunities to participate in decision making.
(5)To ensure appreciation of investment by proper utilization of resources.
(6)To make proper use of funds of shareholders.
(7)To take R&D activities for diversification of product line and also for
facing market competition effectively.
(8)To improve the prestige of the company though growth and expansion
and to give safety to the investments of shareholders

GOVERNMENT
(1)Payment of regular taxes to the government.
(2)To follow the relevant laws, rules and regulations relating to licensing,
pollution control.
(3)To avoid the use of corrupt and unethical means to seek favours from
government and politicians.
(4)To avoid influencing political leadership for personal gains through bribes
and immoral practices.
(5)To follow fair trade practices and raise social welfare.
(6)To avoid tax evasion and avoid tax evasion at all the levels.
(7)To repay loans taken from public sector banks and financial institutions
(8)To maintain financial transparency by disclosing all the important financial
details.

CUSTOMERS
(1)To provide quality goods and services at reasonable price to the
customers.
(2)To avoid artificial scarcity of products and ensure equitable distribution.
(3)To conduct a survey or research to ensure the customers are happy with
the products and services of the bank.
(4)To allow for free and fair business competition and avoid the exploitation
of the consumers.
(5)To maintain a close link with link with the consumers through consumer
cells in order to solve their complaints and suggestions.
(6)To honour and protect the rights of the consumers.

EMPLOYEES
(1)To provide opportunities for meaningful work in the enterprises and to
create a sense of loyalty towards the enterprise.
(2)To create the conditions in which employees are able to put forward their
best efforts for achieving the objectives of enterprise.
(3)To introduce code of conduct for workers and proper machinery for
maintain cordial relations.
(4)To provide security of employment so as to raise the morale and loyalty to
the organization.
(5)To provide fair and just wages and allowances, welfare facilities and
introduce fair work standards.
(6)To introduce schemes of participative management.
(7)To introduce impartial promotion and transfer policies for the employee
force.

SOCIETY
(1) To ensure protection of environment and that the amenities of the local
community are nor damaged.
(2) To provide better living conditions like housing, transport, canteen,
crèches etc.
(3) To introduce social audit by the professionals.
(4) To provide opportunity for better career prospects and rehabilitation of
population affected by any operation of the business.
(4) To ensure Regular supply of goods and services at reasonable price.
(5) To frame policies for conservation of natural resources and wildlife.
(6) To contribute to social causes like education and rural development.
(7) To provide financial support to cultural activities and thereby repay the
social debt.
(8) To contribute towards economic, and national growth and stability.

Reasons for Businesses to Engage in CSR
Business engage in CSR mainly because:
➢ Altruism – being a good citizen
➢ Window Dressing – to appease stakeholders
➢ Contracting Benefits – Helps recruit and retain employees
➢ Gain Customers – Attract customers, helps brand and product positioning
➢ Reduces Production Costs – in terms of packaging, consumption of energy
➢ Risk Management – Address potential legal or regulatory action
➢ Better Access to Capital – Investment and funds available

Social Responsibility ----
Arguments for/ in favour of Social Responsibility of
Business

ARGUMENTS FOR SOCIAL RESPONSIBILITY OF BUSINESS
➢ Changed Public Expectations of Business: Social expectations of business
have increased dramatically since the 1960s. If business wishes to remain
viable in the long run, it must respond to society’s needs and give society
what it wants.
➢ Long Run Profits: Socially responsible businesses tend to have more and
secure long run profits. This is possible as a result of the better community
relations and improved business image.
➢ Ethical Obligation: A business firm can and should have a conscience.
Business should be socially responsible because responsible actions are
right for their own sake.

➢ Public Image: Firms seek to enhance their public image to gain more
customers, better employees, access to money markets, and other
benefits. Since the public considers social goals to be important, business
can create a favorable public image by pursuing social goals.
➢ Better Environment for Business: The firm which is most responsive to the
improvement of the community's quality of life will as a result have a
better community in which to conduct its business. It will be able to attract
and hold skilled employees. Turnover and absenteeism will be reduced.
➢ Avoidance of Government Regulations: Government seeks to regulate
business in the public interest. The regulations may add to the economic
costs and deny freedom to managers in decision making.

➢ Balance of Responsibility and Power: Business has a large amount of
power in society. An equally large amount of responsibility is required to
balance it. When power is significantly greater than responsibility, the
imbalance encourages irresponsible behavior that works against the public
good.
➢ Stockholder Interests: Social responsibility will improve the price of a
business’s stock in the long run. The stock market will view the socially
responsible company as less risky. Therefore, it will award its stock a higher
price earnings ratio.
➢ Possession of Resources: Business has the financial resources, technical
experts, and managerial talent to provide support to public and charitable
projects that need assistance.

➢ Prevention is better than Cure: Social problems have to be handled by the
management at some point of time or the other. Problems with labour
unions should be handled in a diplomatic way, so that they will not develop
into serious social breakdown that consumes most of the management's
time

Social Responsibility ----
Arguments Against Social Responsibility of Business

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY OF BUSINESS
➢ Profit Maximization is the Ultimate Goal: Business units are accused of
having profit maximization as their goal. Since business operates in a world
of poverty and hunger, the economic efficiency of business is a matter of
priority and should be the sole mission of business.
➢ Dilution of Purpose: The pursuit of social goals dilutes business’s primary
purpose: economic productivity. Society may suffer as both economic and
social goals are poorly accomplished.
➢ Society has to Pay the Cost: The costs of social responsibility will be passed
on to the society and the question is can the society bear these additional
costs?
➢ Too Much Power: Business is already one of the most powerful institutions
in our society. If it pursued social goals, it would have even more power.

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY OF BUSINESS
➢ Lack of Skills: The outlook and abilities of business leaders are oriented
primarily toward economies. Business people are poorly qualified to cope
with social issues.
➢ Lack of Accountability: Political representatives pursue social goals and are
held accountable for their actions. Such is not the case with business
leaders. There are no direct lines of social accountability from the business
sector to the public.
➢ Lack of Broad Support: Business involvement in social goals lack support
from all groups in society. There is no broad mandate from society for
business to become involved in social issues.

Assignment (10 marks)
Corporates have generally argued that since the essential purpose of business
is making profits, forcing them to channelize their energy and resources for
undertaking projects under Corporate Social Responsibility is unfair.
What is your considered view on this? Please discuss.

Mahindra & Mahindra Ltd.
➢ Mahindra & Mahindra spent INR 93.50 crores on CSR initiatives during the
financial year 2018-19, according to the annual report published by the
company.
➢ The company spent INR 8.36 crore on Project Nanhi Kali which provides
educational support to underprivileged girls in India through an afterschool
support programme.
➢ M&M also supported a pilot project for Project Nanhi Kali 2.0 which will help
aspiring girls to complete their graduation as well as achieve proficiency in
spoken English and digital literacy.
➢ M&M sponsored its 20th Lifeline Express (hospital on a train) in Arrah Bihar,
through which medical care, treatment, and surgical intervention was provided
to 11,119 individuals. Through Mahindra Hariyali 0.95 million trees were planted
which contributed to improving green cover and protecting bio-diversity in the
country. Of these, 0.83 million trees were planted in the Araku valley, which
besides greening the environment also provided livelihood support to tribal
farmers growing coffee in this region.

Tata Group
➢ The Tata Group conglomerate in India carries out various CSR projects,
most of which are community improvement and poverty alleviation
programs. Through self-help groups, it is engaged in women empowerment
activities, income generation, rural community development, and other
social welfare programs. In the field of education, the Tata Group provides
scholarships and endowments for numerous institutions.
➢ The group also engages in healthcare projects such as facilitation of child
education, immunization and creation of awareness of AIDS. Other areas
include economic empowerment through agriculture programs,
environment protection, providing sport scholarships, and infrastructure
development such as hospitals, research centers, educational institutions,
sports academy, and cultural centers.

Café Coffee Day
Cafe Coffee Day, employs 50 speech and hearing impaired people at their
various outlets as staff. They do this as a part of their CSR activity as a move
towards equal employment. They called them the ‘Silent Brew-masters’. CCD
also has tie-ups with NGO Enable India to empower differently-abled people.
Their biggest CSR initiative is the SVGH Vocational Training College in
Chikmagalur, Karnataka.

ITC Group
 ITC Group, a conglomerate with business interests across hotels, FMCG,
agriculture, IT, and packaging sectors has been focusing on creating
sustainable livelihood and environment protection programs. The company
has been able to generate sustainable livelihood opportunities for six
million people through its CSR activities.
 Their e-choupal program, which aims to connect rural farmers through the
internet for procuring agriculture products, covers 40,000 villages and over
four million farmers. Its social and farm forestry program assists farmers in
converting wasteland to pulpwood plantations. Social empowerment
programs through micro-enterprises or loans have created sustainable
livelihoods for over 40,000 rural women.

Dabur India Ltd.
“What is that life worth which cannot bring comfort to others”
- Dr. S K Burman, Founder, Dabur India Ltd.
Dabur took the onus of bringing toilets closer to rural households with the
‘700 Se 7 Kadam’ initiative, which was launched just ahead of the
government announcing the Swachh Bharat Mission.
60 and 70-year-old women complemented Dabur for bringing about a
revolution in their lives by giving them household toilets, something which
their husbands failed to provide despite decades of marriage.

Dabur India Ltd. - Sustainability of the Project
As per Dabur’s strategy, the households were involved as partners in the
entire exercise with the families contributing financially towards construction
of their own toilets.
Dabur provided only partial financial support. Around 69% of the sample
households have invested a maximum of up to Rs. 30,000 for constructing
their toilets. Over 81% have been investing up to Rs. 900 a month in recurring
maintenance costs.
This financial contribution and active participation by households in the
construction and maintenance of toilets increases their ownership towards
the infrastructure and will positively contribute to sustainability.
Also, existence of the women Self-Help Groups (SHGs) in each village, coupled
with their interest and involvement in ensuring toilets in each household, and
providing credit support for construction of the toilets wherever needed, is
another positive factor for the programs sustainability.

Reliance Industries Ltd.
Project Drishti
❑ Drive to bring light into the lives of visually challenged.
❑ To cover the underprivileged segment of society.
❑ Undertaken over 5,000 keroptoplasty (cornea) surgeries.
❑ Providing campaign at free of cost

Wipro Ltd.
Azim Premji Foundation, Wipro commit ₹1,125 crore to tackle coronavirus
crisis
Wipro Ltd, Wipro Enterprises Ltd and Azim Premji Foundation, have together
committed ₹1125 crore towards tackling the unprecedented health and
humanitarian crisis arising from the COVID-19 pandemic outbreak. Of the
₹1,125 crore, Wipro Ltd’s commitment is ₹100 crore, Wipro Enterprises Ltd’s
is ₹25 crore, and that of the Azim Premji Foundation is ₹1000 crore.

Walmart Case Study
Walmart is designing new stores and retrofitting older stores to be more
energy-efficient. These stores are among the “greenest” in the world. The
three main design objectives for these stores are to:
(1) reduce the amount of energy and natural resources required to operate
and maintain a store,
(2) reduce the amount of raw materials needed to construct a facility, and
(3) use, when appropriate, renewable materials to construct and maintain a
facility. Although many of the design features reduce the stores’ impact on
the environment, these stores are expensive to build, and some of their
elements make economic sense only if energy costs significantly increase.
Initial projections call for the energy used at these stores to be 30 to
50 percent less than at the older stores that have not been retrofitted,
reducing a store’s energy costs by $500,000 annually.

Walmart Case Study
Some of the sustainable features are as follows:
➢ A wind turbine on top of a store produces enough energy to reduce a
store’s electricity consumption by 5 percent.
➢ A rainwater harvesting and treatment system provides 95 percent of the
water needed for on-site irrigation and reduces demand on the local storm-
water system.
➢ Stores are lower in height that means fewer building materials are needed,
plus it reduces heating and cooling needs.
➢ Instead of fluorescent lighting, refrigerated cases used LEDs. Also the lights
stay off until the customer opens the case
➢ Heat generated by the building’s refrigeration system is captured and
redirected to heat the water used in the restroom sinks

Walmart Case Study
➢ Cooking oil from the fryers and waste engine oil are burned in a biofuel
boiler to generate heat that is directed into the heating, ventilation, and
radiant floor-heating systems, conserving energy.

Assignment
Udaypur is a village in the vicinity of a garment factory in which you are the
Manager in charge of Corporate Social Responsibility (CSR). Villagers are
generally agitated because the chemical dye in garment factory has spoilt the
ground water and they complain that the water is not potable and some
children have fallen ill. Under CSR budget, you have been provided Rs 25
lakhs to initiate steps to undertake such activities that will not only help the
villagers but also assuage and build amicable relationship with the factory
management.
Please prepare a draft project plan (10 Marks)

References
➢ Sharma J.P ‘Corporate Governance, business ethics and CSR, Anne Books
Pvt Ltd, New Delhi.
➢ Sanjay K Agarwal: Corporate Social Responsibility in India.
➢ Mitra, Nayan, Schmidpeter, René (Eds.): Corporate Social Responsibility in
India: Cases and Developments After the Legal Mandate.
➢ Crane. A.Et al;(2008): The Oxford handbook of Corporate Social
Responsibility, New York; Oxford University Press Inc.
➢ J.W. Mckie Social Responsibility and the business Predicament.
➢ C.V. Baxi, Ajit Prasad Corporate Social Responsibility: Concepts and Cases:
The Indian Experience.

Reference Books:
➢ Down to Earth – A magazine on environmental issues by Center for Science
and Environment
➢ Movie – An Inconvenient Truth – A documentary film by Al Gore.
Internet References:
➢ www.cse-india.org
➢ www.unfccc.de
➢ www.greenpeace.org
➢ www.teriin.org

THANK YOU
Dr. Parveen Nagpal
www.linkedin.com/in/dr-parveen-kaur-nagpal-82965b15

2 Corporate Social Responsibility

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